ARM Energy Holdings, LLC (ARM), announced a final investment decision (FID) on its 236-mile, 42-inch Mustang Express Pipeline.
The $2.3 billion project benefits from an anchor shipper commitment from Sempra Infrastructure to provide natural gas for its Port Arthur LNG Phase 2 project, which recently achieved FID. Mustang Express Pipeline will be constructed and operated by ARM Energy, along with its financial partners, Pacific Investment Management Company (PIMCO) and associated co-investors.
The pipelines will have a total capacity of 2.5 billion cubic feet per day (bcf/d) and are expected to be completed in late 2028 or early 2029. The Mustang Express Pipeline will include the following primary segments:
- Cougar Lateral: 55 miles from the Tres Palacios Storage to the Katy Hub in Katy, Texas
- Mustang Mainline: 178 miles from the Katy Hub to Port Arthur, Texas
- Golden Triangle / Spindletop Storage Lateral: Three miles around Port Arthur, Texas
The Mustang Express Pipeline has also secured all of the required steel and compression necessary for the project. Jindal Tubular USA will provide the mill capacity and Solar Turbines Inc. will provide the turbines for the three planned compressor stations. The gas-driven compressor stations will have a total capacity of 300,000 horsepower.
“Developing the Mustang Express Pipeline represents a major milestone in our growth and reinforces our commitment to quality, large-scale customers like Sempra Infrastructure,” said Zach Lee, Chief Executive Officer of ARM Energy. “We are thrilled to partner with PIMCO and our other equity partners on this highly interconnected pipeline, which will significantly enhance the efficiency of the U.S. natural gas supply chain. By linking two of the most prolific natural gas-producing regions in the U.S. directly to LNG export facilities in Texas, we are helping ensure a reliable supply of natural gas for liquefaction and export with a route that crosses four storage facilities – delivering positive impacts for global energy needs and Texas communities.”
“PIMCO is pleased to support the development of the Mustang Express Pipeline,” said Adam Gubner, Managing Director and Portfolio Manager at PIMCO. “This reflects our commitment to invest in infrastructure to support LNG expansion in the U.S., while also providing compelling long-term investment opportunities for our clients looking for attractive risk-adjusted returns.”
ARM Energy will conduct an open season for the remaining pipeline capacity available on the Mustang Express Pipeline. The open season will commence later this month.
